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How Much Is A Hot Fries Franchise?
Food chains are a popular choice among franchisees because of its profitability. And sometimes it could be the branding and the market. Even if most franchisees are eager to franchise big food chains, smaller ones are also emerging. Plus, it also has the potential to grow. Eventually, they might become well-known. One example is the Hot Fries franchise. But how much would a Hot Fries franchise cost?
In this article, learn more about Hot Fries, its cost, and other requirements to start one.
Hot Fries Franchise Overview
Founder and CEO Shawn Patel established Hot Fries in 2011 in California. Currently, its prominent location is in Visalia, CA.
In 2016, Restaurant News reported that Hot Fries would have locations in Texas, specifically in the Dallas Fort Worth area. It opened its first Texas location in Lewisville. Patel hopes that Hot Fries will boom nationally.
It wasn’t until 2016 that the food chain started its venture in franchising. Even if they have less than 10 locations so far, Hot Fries aims to add more sites to serve more customers in the future.
Aside from their famous fries, they offer the following food products and drinks as well:
- Burgers (Chicken Sandwich, Dope Burger, Unbelievaburger)
- Chicken (Nuggets, Tenders, Wings)
- Baked Potato
- Desserts (Churros)
- Drinks (Lemonade, Soft Drinks, Milkshakes)
Plus, customers can enjoy fries and chicken with sauces. They also serve tasty handcrafted fries such as Pepperoni Fries, Flamin’ Hot Fries (fries with Flamin’ Hot Cheetos), and Carne Asada Fries.
If you’re interested in opening a Hot Fries and belong in any of the states below, you must ensure that you’ve complied with all the requirements needed to start a franchise:
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North & South Dakota
- Oregon
- Rhode Island
- Virginia
- Washington
- Wisconsin
Before we discuss the Hot Fries franchise cost, know what obligations to fulfill before opening one.
Training
Before opening a new Hot Fries franchise, franchisees should undergo training. In fact, franchisees will have to complete training sessions two months before opening. Hot Fries Franchising, LLC (franchisor) will conduct it in the headquarters. An assigned manager should attend this training and should accomplish all requirements needed. Two assistants can also join in the training session.
The franchisor may even hold more training workshops in the future. It might require the attendance of the franchisee, manager, and employees.
Territory and Obligations
The franchisor will grant the franchisee’s territory provided that the location has around 50,000 to 100,000 individuals.
The franchisor expects the franchisee to supervise the location. Plus, franchisees should also assign a manager on-site. In cases where the franchisee is not an entity, they can become the manager. However, if it’s an entity, the manager should own 15% of the equity.
The franchisee can also sell approved products, and the franchisor may not allow the selling of other products or services.
Franchisees will receive an initial 10-year term. However, if the franchisee decides to renew, they can do so. They must complete all requirements necessary, and once they do, they’ll get two more five-year terms.
Hot Fries Franchise Cost
The estimated initial Hot Fries franchise cost is around $166,197 to $374,900. That doesn’t include marketing, royalty, and management fees. The franchisor doesn’t offer financial assistance.
You may refer to the tables below for your initial investment in the franchise and other costs you might incur.
Your Investments
| Name of Fee | Low | High |
|---|---|---|
| Franchise Fee | $30,000 | $30,000 |
| Training Expenses | $2,000 | $6,000 |
| Real Property | $4,167 | $16,500 |
| Property Improvements | $45,000 | $145,000 |
| Computer Equipment and Software | $2,800 | $6,000 |
| Office Expenses | $500 | $2,500 |
| Signage | $5,500 | $8,000 |
| Furniture and Equipment | $45,000 | $95,000 |
| Utilities | $500 | $4,000 |
| Uniforms | $250 | $750 |
| Inventory | $7,500 | $15,500 |
| Market Introduction | $2,000 | $4,000 |
| Insurance | $530 | $5,300 |
| Licenses and Permits | $500 | $4,000 |
| Legal and Accounting | $1,000 | $3,100 |
| Additional Funds | $20,000 | $30,000 |
| ESTIMATED TOTAL | $166,997 | $374,900 |
Other Cost
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 6% of Gross Revenue. |
| Marketing Fund Contribution | 2% of Gross Revenue based on the previous week’s revenue. |
| Late Fees | The lower of 1.5% per month or the highest rate allowed by the state where the franchisee is located. |
| Management Fee | $200/day; The franchisor may charge this fee if it is required to manage the franchisee’s business for any reason. |
| Transfer Fee | $10,000 |
Did You Know?
- Customers can raise money by having a fry party in any Hot Fries location. Hot Fries will even return a percentage of the profits to the customers. Aside from that, catering is also available in any Hot Fries location. Plus, customers can also join the Hot Fries Club. This entitles customers to get discounts and more information about Hot Fries. Plus, they’ll get a free Hot Fries product on their birthday.
- What makes them different from other food chains is the way they fry their potatoes. First, they slice it and “flash-fry” it. This will give the spuds a perfect golden brown finish. Finally, while it’s hot, they season the fries and serve it.
- In 2017, they hosted a fundraiser to support BStars. And 20% of the proceeds went to the organization.
- Any Hot Fries location doesn’t use trans fat oils in frying their spuds. They even have gluten-free and vegan options.
- Once you fill up an application, Hot Fries will support you every step of the way. They have passionate people ready to help you grow your business to achieve the “gooder future” promise.
Now that you have an idea of the Hot Fries franchise cost and other information, are you ready to open your own Hot Fries location? You can send your application on their website. Click on this link to get started. After that, you’ll receive their Franchise Disclosure Document. And see if you’ll proceed with a franchise. Upon further review and approval, you can pay the franchise fee so you can receive your territory.
If you want more information about other franchises, you can check out other resources here at Franchise How!